Financial analysis and ratios vocabulary

Techniques for evaluating financial statements to assess a company's performance.

liquidity ratio – a measure of a company's ability to meet short-term obligations.

current ratio – current assets divided by current liabilities.

quick ratio – (current assets minus inventory) divided by current liabilities.

profitability ratio – a metric assessing a company's ability to generate profit.

gross margin ratio – gross profit divided by net sales.

return on assets (ROA) – net income divided by total assets.

return on equity (ROE) – net income divided by shareholders' equity.

...

This is not all! Sign up to see the rest of this text and become part of our community of language learners.

...

operating margin – operating income divided by net sales.

working capital ratio – another term for current ratio.

Comments

1.	Introduction
2.	Basic accounting terms
3.	Accounting principles and concepts
4.	Budgeting and forecasting
5.	Cost accounting
6.	Financial analysis and ratios
7.	Taxation
8.	Auditing and compliance
9.	Corporate finance and investment
10.	International finance
11.	Banking and cash management
12.	Payroll and compensation
13.	Accounts payable and accounts receivable
14.	Risk management
15.	Financial regulations and accounting standards

1.	Introduction
2.	Basic accounting terms
3.	Accounting principles and concepts
4.	Budgeting and forecasting
5.	Cost accounting
6.	Financial analysis and ratios
7.	Taxation
8.	Auditing and compliance
9.	Corporate finance and investment
10.	International finance
11.	Banking and cash management
12.	Payroll and compensation
13.	Accounts payable and accounts receivable
14.	Risk management
15.	Financial regulations and accounting standards

6 Financial analysis and ratios vocabulary